9-Feb-10 12:44 PM
During negotiations for the enforced sale of London’s Gatwick Airport during 2009, the resident airlines there, and especially those with extensive operations like easyJet, let it be known that what they really wanted next was a ‘real’ airport operator that had the interests of airlines and passengers at its heart. While GIP’s experience at London City Airport – albeit only with short-haul airlines apart from BA’s New York flight – would have been comforting to those airlines, its surprisingly quick decision to offer equity to a pension fund and a sovereign wealth fund may be cause for some concern to the airlines.
9-Feb-10 12:16 PM
Australian domestic Business Class fares reached their highest levels in 11 months in Feb-2010, according to the Bureau of Infrastructure, Transport & Regional Economics fare survey. The index of real Business Class fares (July 2003 = 100) rose to 104.0 in Feb-2010 to the highest level since Mar-2009 (104.7), reflecting increasing in economic activity and recovering corporate travel.
9-Feb-10 12:02 PM
Airlines are becoming more optimistic about the outlook for yields, with a recent IATA survey of airline executives noting over three-quarters of respondents indicated that yields should increase over the coming year. IATA stated that further demand recovery, combined with capacity restraint, could “lend support to this pattern of improvement over the year ahead”, but added, “the risk remains of excess capacity re-entering the market once more and muting yield recovery”.
8-Feb-10 4:36 PM
Canadian aircraft manufacturer Bombardier saw 2009 aircraft deliveries down by more than 10% for the year to 31-Jan-2010, and expects deliveries to be cut by double-digit levels in the current fiscal year for both business and commercial aircraft.
8-Feb-10 2:41 PM
Dubai may have found another oil field recently, but it is the neighbouring emirate of Abu Dhabi that has all the cash. Abu Dhabi provided USD10 billion in emergency funding late last year to Dubai (although recent reports suggest the figure was about half that) to help Dubai narrowly avoid a default on its massive debts. In the past few days, Abu Dhabi Investment Authority has moved to acquire a stake in London Gatwick Airport, while Dubai World's investment arm, Istithmar, sold its entire holding in Indian budget airline, SpiceJet, as part of its restructure.
8-Feb-10 2:12 PM
Oneworld partners, British Airways and Finnair are each beset by significant challenges, not least labour unrest and a need to cut costs. Despite this, BA managed to restore some respectability to its bottom line in the Dec-2009 quarter. The carrier unveiled an operating profit of GBP25 million (EUR28.6 million) in the three months ended 31-Dec-2009 (against a loss of GBP51 million in the same period last year), while Finnair reported an operating loss of EUR39.4 million (a significant widening from a EUR13.7 million loss in the Dec-2008 quarter). BA’s greater ability to draw on its partnerships arrangements may give it the vital edge, as economic conditions remain testing.
5-Feb-10 5:15 PM
A simple question on the lessons learned from the downturn, posed during last week’s Continental analyst call, resulted in the clearest indication yet of the structural changes now under way at US carriers. They go far beyond capacity, revealing the task ahead for legacy airlines. It also reveals the implications for manufacturers, regionals and organised labor, as low cost airlines also restrain expansion.
5-Feb-10 5:11 PM
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Philippines is one the fastest growing air travel markets in the world, joining the likes of India, Mexico and Brazil in experiencing rapid passenger growth, driven by strong domestic air travel growth rates, as LCCs, especially locally based Cebu Pacific, provide a boost for the industry, entering domestic markets previously not served with affordable air services.
5-Feb-10 4:46 PM
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Ryanair has raised its FY2010 earnings forecast to EUR275 million, as a smaller than expected yield fall (a 12% reduction, rather than the up to 20% reduction previously guided) helped narrow the carrier’s third quarter loss to EUR11 million (compared with EUR119 million in the previous corresponding period). Ryanair CEO, Michael O’Leary, commented that the loss in the quarter was “disappointing, although better than expected”.
5-Feb-10 12:36 PM
Standing pat with solid contracts that do not change for another seven years, Pinnacle, which a market capitalization of about USD144 million as of 01-Feb-2010, is casting about for more opportunities in picking up business, as contracts between other regionals and their major contracts begin to expire. Chair and CEO Phil Trenary noted all the contracts expiring between now and 2017. That, coupled with its low-cost fleet, offer up opportunities to win the competition for new business, he said.
5-Feb-10 11:02 AM
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Oil prices slumped 5% on Thursday, dropping USD3.84 per barrel in New York (the biggest one-day fall since Jul-2009), to settle at USD73.14. Growing concerns about debt-laden European economies and rising US unemployment claims have sparked a commodities sell-off this week, while a stronger US dollar has exacerbated oil's falls.
5-Feb-10 10:47 AM
That the Colgan 3407 accident was caused by pilot error comes as no surprise, given the string of failures identified at this week's National Transportation Safety Board meeting. Indeed, so much of the board meeting seemed to be marked by failure which hung like a cloud over the proceedings. While the crew and the airline may have failed, it was not that shadowing the board’s report. It was inactivity on the biggest issues raised by the accident – codesharing, professionalism, commuting and training.
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British Airways’ surprise profit, Finnair’s unsurprising loss. A contrast in styles
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Philippines Outlook: Philippine Airlines in trouble again; Cebu Pacific growing. Low cost long-haul?
The party's over: Ryanair's ancillaries are stuttering, to raise fares, slow growth
Pinnacle poised for coming industry contract shifts
Oil prices smashed on economic worries, stronger US dollar. Dubai finds new oil field
Issues NTSB can do little about remain in play